Question

journal entry :- miscellanous expenses paid on cheque​

Answer 1

Answer:

Expenses A/C dr.

To Bank A/C

Answer 2

ANSWER :

❖ The journal entry for the transaction "miscellaneous expenses paid by cheque" is :-

$: \mapsto: \: \: \sf{ \large{ Miscellaneous \: \: Expenses \: \: A/C \: \: Dr. \: \: \:(Amount)}} \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \\ \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \sf{ \large{ \: \: To \: \: \: Bank \: \: \: \: A/C \: \: \: \: \: \: \: \: \: \: \: \:\:(Amount)}} \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \\ \\ \sf{ \large{[ \: Being \: \:miscellaneous \: \: expenses \: \: paid \: \: by \: \: cheque \: ] }} \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \:$

EXPLANATION :

❖ The three steps involved in the process of journalising the given transaction are :-

• Step 1. Identification of accounts : In this transaction, miscellaneous expenses paid by cheque. Hence, the two accounts involve in this transaction are : Miscellaneous Expenses A/C and Bank A/C.

• Step 2. Classification of accounts : According to the Modern Approach of classification, Miscellaneous Expense A/C is an Expense Account and Bank A/C is an Asset Account.

• Step 3. Application of Debit and Credit rule : When Miscellaneous expenses paid, the value of Expense increases. Therefore, the Miscellaneous Expenses A/C will be debited (as per the rule being increase in Expsense :Debited). Again, the expenses paid in cash and hence the Asset (from Bank) decreases. Therefore, Bank A/C will be credited (as per the rule being Assets decrease: Credited).